DayCents

Savings & Banking

College Savings Calculator

College costs have risen faster than general inflation for decades, so the sticker price today is not the number you need. This inflates each year of the course to the year it will actually be paid.

Tested against worked examplesHow we verify

Tuition, fees, room and board at the kind of school you have in mind.

Education costs have historically outpaced general inflation.

Save this much monthly: $1,063

Save this much monthly

$1,063

To cover the full projected cost by the start date.

Projected total cost
$210,622
Your savings will grow to
$36,388
Shortfall
$174,234

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Compare scenariosTry three values of one input
College Savings Calculator results for three values of Annual cost today
Annual cost today
Save this much monthly$935$1,063+$129$1,192+$257
Projected total cost$189,560$210,622+$21,062$231,684+$42,124
Shortfall$153,172$174,234+$21,062$195,296+$42,124

Every other input stays at the value you set above — currently $30,000 for annual cost today. Differences are measured against the first column.

Saved scenariosSave this calculation

Saved in this browser only — no account, and nothing is sent to us. Clearing your browser data deletes them.

How this calculator works

Each year of the course is inflated separately: year one by the years until start, year two by one more, and so on, then summed. Current savings compound monthly at your expected return to the start date, and the required monthly contribution is the level payment that closes the remaining gap by then.

Returns and cost inflation are held constant, and the estimate is pre-tax and pre-aid. It assumes the whole cost is funded by the start date rather than paid year by year, which is the more conservative target.

What this assumes

  • A constant investment return and steady contributions, with education costs inflating at the rate you enter.
  • Education inflation has historically run above general inflation, so entering general CPI understates the target.
  • Financial aid, scholarships and tax treatment of the account are excluded — a 529 grows untaxed for qualified costs.

What changes this number

Years until enrolment
The dominant input, exactly as with retirement. Starting at birth rather than at ten roughly doubles the effect of compounding.
Cost inflation assumed
Moves the target more than the return assumption does, and is the figure most people set too low.
Contribution amount
The lever you control. Small automatic amounts started early beat large ones started late.

A worked example

Take the $30k/yr, starting in 10 years scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.

What you enter

Annual cost today
$30,000
Years until they start
10 years
Years of school
4 years
Saved so far
$20,000

What it returns

Save this much monthly
$1,063
Projected total cost
$210,622
Your savings will grow to
$36,388
Shortfall
$174,234

Try an example

Frequently asked questions

Why inflate the cost so heavily?

Because published college costs have risen faster than general prices for most of the past forty years. At 5% a year, a $30,000 course year becomes roughly $49,000 in a decade. Using today's sticker price is the most common way college plans come up short.

Do I need to cover the whole cost?

Rarely, and aiming to can crowd out your own retirement — which has no scholarships. Many families target a third to a half, expecting the rest from current income, aid, work, and reasonable borrowing by the student. Set the annual cost input to the share you intend to fund.

Should I use a 529 plan?

For education-specific saving, usually yes: growth is tax-free when spent on qualified expenses, many states add a deduction or credit, and unused amounts can now be moved to a Roth IRA within limits. The trade-off is flexibility, since non-qualified withdrawals face tax and a penalty on the earnings.

Does saving hurt financial aid?

Less than people fear. Parent-owned assets, including 529s, are assessed at a much lower rate than student-owned assets in federal aid formulas — and having the money generally beats the small aid reduction. Student-owned accounts weigh considerably more heavily.

Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.